1937-10-14 — Page 1

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COST OF THE WAR TO JAPAN

JAPANESE ATTACK

ON CANTON

"CHALLENGE TO ENTIRE WORLD”

Mayor Interviewed

Canton, October 13.

In an interview granted to foreign correspondents here to-day, Mr. Tseng Yang-fu, Mayor of Canton, expressed gratification over the moral support given to China by peace-loving and justice-up- holding nations la her present armed resistance against the Japan- ese aggression and over particularly President Roosevelt's Chicago speech, signifying the United States' readiness to participate in a concerted effort to uphold international justice and to restore the sanctity of international treaties:

Canton, the Mayor said, being one of the principal open cities especially acclaims the ruthlessly bombed from the air everyday, President's speech and the 1.500,000 people here anxiously hope, with millions of other Chinese victims of Japanese aggression and terrorism, that the moral forces in the United States, Great Britain and other peace-loving countries will quickly be crystalised into "concrete action which would end the present menace to world peace and civilisation.

Expressing confidence that jus- Roosevelt having made such an tice will eventually triumph, Ma- outspoken declaration, will lead yor Tseng told the pressmen that the peace-loving 90 per cent, of he believed that the problem of the world's population in applying Japanese aggression would not be effective sanctions against the so difficult of solution since, as aggressor. He expressed further President Roosevelt said in his gratification that a conference of speech, people loving peace, free-the signatories to the Nine-Power dom and security still constitute Treaty would be shortly convened 90 per cent. of the world's popula" and believed that America, being tion and it is hardly conceivable one of the principal signatories to that Pack, would surely formulate that the remaining 10 per cent.. which make up the aggressors, and submit a definite proposal concrete action to could forever imperil such

calling, för check the present Japanese" ng- pverwhelming majority.

gression.

25

Mayor Tseng was very keer in expressing the hope that President

MANCHUKUO UNREST

Situation Acute

Peiping, Oct. 13.

The unrest which has been in evidence in Manchoukuo since the. start of the Sino-Japanese hostill- ties has become acute according

(Continued on Page 9)

GENEROSITY

THURSDAY, OCTOBER 14, 1937,肆拜禮 日肆拾月拾年世佰玖仟登英 Price'

HUGE ADVERSE

ADVERSE BALANCE IN FOREIGN TRADE

MILITARISTS REQUIRE 10 MILLION YEN DAILY FOR WAR

Country Heading For Excessive Inflation

(RY D. K. LIEU, WHO IS IN CHARGE OF THE BUREAU OF NATIONAL ECONOMIC RESEARCH AT NÄNKING).

A COUPLE OF WEEKS AGO A FOREIGN NEWSPAPER ESTIMATED THE COST OF JAPAN- ESE AGGRESSION IN CHINA AT 10 MILLION YEN A DAY. A CHINESE AUTHORITY ON JA- ADJUSTED WITH PANESE QUESTIONS, ON THE BASIS OF THE RUSSO-JAPANESE - WAR, REGARD TO THE RISE IN PRICES DURING THE THREE DECADES, ESTIMATES THE COST OF KEEPING 300,000 SOLDIERS IN THE FIELD IN CHINA AT ▷ MILLION YEN. THE TWO FIGURES DO NOT DIFFER VERY MUCH

:

Fighting has gone on for nearly two months in the North and about one month around Shang. hal, yet the whole campaign is barely started. The deeper the Japanese army penetrates "inte the interior of China, the more necessary will it be to send additional troops to protect the line of communications with the sea coast, not to mention, the need of displacing those who die or are wounded in the battlefield. We will disregard the latter consideration since the cost will be cal- culated on the basis of the fighting units. With 500,000 soldiers to fight the Chinese army in China, and the volunteers in Manchuria, the expenditure will be 15 million yen a day, or 450" million yen a month. In fact, the longer the line of communications, the greater will be the cost of transportation.

The working budget of Japan for 1936-37. not taking into account the cost of this war was 2,311 million yen, which has later been increased to 2,600 million yen. Six months' nghting In China, at 450 million a month, will double that amount. The Japanese Cabinet has already ask- ed for several hundred million yen of additional expenditure from the Diet, but that will only suffice for a couple of months. How is Japan going to raise the above-mentioned amount, as well, as all additional amounts for Bnancing the war?

The outstanding national debt of Japan has already exceeded the 10 billion mark. A year of war with China will increase it by at least 50 per cent. According to some foreign experts on Ja- panese financial questions, her existing debt is already greater than her national income, and the additional burden will tip the balance very heavily. With a population of less than 70 millon in Japan Proper-the people who are to bear the burden, as Korea, Forniosa and Manchuria can contribute little to the amortization of such debts-the. per capita debt burden is already 142 yen. and will increase to 213 yen.

It

DARING CHINESE RAID ON TANGKU

JAPANESE MUNITION SUPPLY

DEPOTS BOMBED

Nanking. Oct. 13: Chinese aircraft made a daring raid yes. terday on Tangku according to Chinese Aviation Headquarters which states that one squadron of Chinese bombers severely bombed Japanese transports, warships and mualtion supply depots in Tangku taking the Japanese there entirely by surprise since Tangku is so The Chinese bombers all returned far behind the Japanese lines.

safely to their base.

יי

Three alarms were sounded to-hwel near Yangchow later "this thus explaining the "day twice this morning and once morning

in the afternoon. It is learned second air raid alarm in Nanking. that three Japanese planes visited When the alarm was again sound- Lungtan this morning probably in the afternoon Chinese pursuit looking for a

Japanese plane planes cruised in the sky above that was shot down yesterday the Tongshan and Chuyung aren afternoon but quickly left hencefor nearly an hour but no Japan- the alarm was sounded in Nan-ese plane came in the vicinity of king. Another report says thatNanking. Japanese planes bombed Shiher- Reuter.

WORLD AFFAIRS BROADCAST

Some Observations On Pres. Roosevelt's

"d.

Speech

JAPAN'S ACTION TIMED TO NICETY

imports was not paid by exports.

A very interesting broadcast talk. Compared with the corresponding period of 1936, the increase in im- in the weekly "World Affairs" PERSONIFIED me the percentage of national 100 ml lov Jente explanation ports was 655 million, and that in series was given by Mr. J. L. Brier-

COLOSSAL JAPANESE OFFER TO CHINESE TROOPS!

Shanghai, Oct. 13.“

this debt Of course the Japanese Govern of imports was 2,145,920,000. The significance of burden can best be understood iment has since the outbreak of means that nearly one third of the the Lukouchiao affair revalued its we compare it with the burdens of the European Powers on the gold holdings, raising its value Eve of the World War At that from 800 million to approximately

debt to national income Ger- many was 13.5, in Great Britain 30. in Russia 62 and in France 89. The per centage for Japan at pre- scnt is about 108.

of the revaluation is that the exports only 310 million yen

The ly, O.RE. Professor of Interna-

holdings were formerly valued on adverse balance was therefore just tion Law, Oxford University, last

the basis of the gold yen, while about doubled in this year, com- now they are revalued on the basispared with the last.

discount.

night when he commented, at considerable length, on President Roosevelt's speech at Chleage last week.

The Professor said that it was not very often that any speech should provide such world-wide ap peal and interest and it was all the more appealing because no one could say whether it was an in- dication of a new American policy. It was worth while, the speaker said, for the world to consider want

K.O.Y.L.I. CUP FINAL

·SPLENDID POEO MATCH

Win For Staff And Departments

Ideal

weather favoured the anal of the KO.YLI Cup play". ed at the Hong Kong Polo Club ground, Boundary Street, yester- day afternoon.

Among the large crowd of spectators present were His Ex- cellency the Officer Administering the Government, Mr. N. L. Smith.

by Miss accompanied

Judith amith, and His Excellency Major- General A. W. Bartholomew and Mrs. Bartholomew.

Play of a high standard was witnessed and after an exciting tussle, the Staff and Departments defcuted the Seaforth Highlanders By Ave goals to four. At the end of the second chukka, the Staff and Departments, led by the odd goal in five.

of current prices in terms of the Although in the second half year paper yen, with a ten per cent. the adverse trade balance was FLOTATION OF BONDS

This sounds all right.usually reduced to a large extent, With the Rotation of Govern- ment. bonds, there will naturally but what actually happens is that it is not likely to happen this be currency insation, as the bonds.all the gold above the revalued 500 rar. The adverse balance in July With the sun appearing in its in a market already saturated million yen, that is to say, more already amounted to 80 million than 60 per cent of the original gen. The "Osaka Mainchi" at private and

estimated the adverse to reliable foreign reports reach-full glory for the first time in more with Government

than a week, Japanese planes took securities, will have to be simply gold holdings is taken out of the April 26

balance of the first half year at ing Pelping which states that a

to the air Very early and systema-allocated with the Bank of Japan, monetary reserve and applied to other uses. The principal use of

450 million, and that of the second large section of the population is

tically bombed the Chinese post- which will issue additional cur- dissected in the North whither

Klangwan. rency with the bonds is security. this gold is to buy ammunition halt year at 50 million yen, or 500

the President said. The speech was

'Captain' Whitehead (2), Major the Kwantung army has drafted tons in Chapel and

Japanese artillery later joined in. The specie reserve of the Japanese abroad and otherwise to make up million yen for the whole year. more than a

The figures so far avallable show addressed to a double audience- hundred thousand

firing shell after shell in an effort bank notes has already dwindled the deficit in. Japan's international extra troops in the past few

that the actual adverse balance of the Americans on the one hai Shannon (2) and Major Murphy for the winners while to batter down the Chinese de from 63 per cent in 1927 to about payments. It 19

that estimated months.

unprecedented adverse the Arst seven months has already and the rest of the world" on the scored fences. Simultaneously the Japan-125 per cent at the present time.

exceeded the estimate for the other, and when the President Captain Mackintosh-Walker armed forces actively hostile to-

ese resorted to propaganda, seat- and the security reserve increased balance in Japan's foreign trade

must not be overlooked in estimat-whole year by 40 per cent, or 200 spoke of the international tettor Major wards the regime already exceeds

tering pamphlets from the air. from 27 per cent to 75 per cent. that figure and are steadily re- cruiting deserters from native sol- urging the Chinese troops to lay An increase of note issue by 500 ing the cost of the war to the million yen. How long will the 800 he made it clear that he had in down their arms as "resistance million yen will mean a further Island Empire. This amounted to million yen of gold withdrawn from his mind the situation in Spain and the Mediterranean as well as 618,144,000 yen; for the first half diery. Many districts are reported

Was useless." and offering one reduction of the specie reserve to

the Far Eastern conflet, and in of this year, when the total value i to be completely out of control

(Continued on Page 9) jeopardising the lives and property dollar for every soldier surrender- about 20 per cent,

of the Japanese. The situation la expected to become worse in the winter although not sufficient to embarrass Japanese military opera- and the tions in North China movement lacks organisation and icadership. Keuter.

St. Vincent de Paul Bazaar

Every year the Bazaar which le held in the month of November is the chief source of revenue for the St. Vincent de Paul Society which works among the poor of Hong Kong, and preparations for it are always carried on for months be- fore hand. This year the Com- mittee realised that the helpers on whose devoted work they have mainly relied in the past are now

ing with one of these leaflets.

#

"THEY SHALL NOT PASS!"

Meanwhile another Japanese at- tempt to land troops in the vicinity of Liuho for an encircling move- ment is believed to be imminent. After severely shelling Chinese positions in north-west Liuho, a

Bocca Tigris, Oct. 13. flect of Japanese warships with

There is no possibility of a re- several transports are reported to i have moved" fteen miles up the opening of the Pearl River at this Yangtsze where they are expected Junction for shipping because of to try landing.--

the Japanese plan to make a land-

Vruter.

ing near the forts here. Japanese warships suddenly turn up and disappear again the, next day. hence the continuous threat is existing.

BOYCOTT OF OLYMPIAD

Mines are laid in the port of Swatow, and steamers cannot enter harbour from 6 pin. to 5 am.- International News Agency.

Vice-Admiral Chen Cheh, com- mandant of Bocca. Tigris fort, has declared that he is ready to repel London, Oct. 13. A boycott of the entire Inter- Japanese naval and aerial attacks, his motto being "They shall not national Sporting World was de- manded against the Olymple pass." He vowed that he would nearly all engaged in working for Games in Tokyo in 1940 on Tues- follow the fate of the Bocca Tigris- the wounded soldiers and re- day by the General Council of the in the event of a Japanese in- fugees, and for a time they feared British League of Nationa Union vasion. that their assistance would not be at a special session. The resolu- assilable. However, these helpers tion was submitted by the MP. all gave the assurance that they Noel Baker. would work for a longer time and with greater earnestness in order to help the poor at home as well as the sufferers in the North.

It is to be hoped that the charitable "public of the Colony will respond in the same spirit. The Bazaar will be held at Chat- ham Road, Kowloon, on Sunday. November 7.

A number of other speakers sUD- ported Baker's motion for a boy- cott of aggression in the Far East, for collaborations of all peace-lov- tng democracies and for the main- tenance of peace by the authority of the League of Nations.

A similar attitude wAA taken towards the Spanish question.

Transaceum News Service,

TREATY FRIENDSHIP

Paris, Oct. 13.. Yugoslavia and France have. renewed the treaty friendship for another five years the treaty ex- piring at the end of the year if it is not renewed.,- Reuter Bulletin Service.

The

DEAF AND "BLIND"

4.

BUT NOT DUMB!

The machine-gunning of three British Embassy cars by the Japanese is the theme of the Editor's article on the Bino- Japanese conflict, under the above caption; on Page 8.

SPANISH WAR

Madrid Bombing Casualties

London, Oct. 13. The Insurgents claim to have re- pulsed the Government attacks on the Aragon front and to have cap- tured a number of villages in As- turias, The Government admit the Insurgent success in Asturias but claim the capture of three positions on the Aragon front. Each side claim to have brought down a great number of aircraft. It is reported that the casualties in yesterday's bombardment of Madrid amounted to a hundred deaths. Heuter's Bulletin Bervice.

(Continued on Back Paro)

VOLUNTEERS FOR THE FRONT

LOCAL SPORTSMAN PASSES

The

Mr. S. Hussain Bux

Canton, Oct. 13. Over 100 of the overseas Chin- ese in Canton to-day volunteered to go to Nanking for war work or active service at the front.

Indian community lost a These patriotic Chinese from member of its younger set yester- abroad called on Mayor Teng day by the passing of Mr. Shiek Yang-fu, Mr. Wu Te-chen, Chair- man of the Kwangtung Provincial Hussain Bux at the early age of Government, and General Tu Hon- 20 years. The deceased had been III for only a few days and bla mou, Commander-in-Chief of the

passing came as a great shock to 4th Route Army, to convey to them

his large circle of friends. A par their earnest desire to enlist. for

ticularly distressing feature is that service.

he was married only eight months It is understood their have been taken down and will be 880 and in addition to his young widow he leaves an aged mother submitted to Nanking in order

to mourn his death. work

be that suitable

may given to them by the Central Authorities.-

International News Agency.

names

and

Rawsthorne netted two goals each for the Seaforths.

The teams were as follows:- Staff and Departments:-No. 1, Major M. A. Murphy: No. 2. Capt P. S. Whitehead: No. 3, Major E. C. B. Shannon; No. 4. Brigadier H. G. Seth-Smith.

(Continued on Back Page).

THE DOLLAR

TT. ON NEW YORK: 30-11/18 T.T. ON LONDON: 1s. 2-7/8d.

London Silver Market

(From Our Own Correspondent)..

London, Oct. 13. London silver prices to-day were unchanged, as follow:

Bpot.......... Forward.

Oct, 11.

Oct. 12. ....19-15/16

...19-7/8

NEWS INDEX

Educated first at the Ella Ka- doorie School for Indians and then at--Queen's College, the deceased Government Radio Jo'neq the Omce when he left school some eight years ago, He was a very active member of the Radio Sports r;ables Club, representing them both at Finance hockey and football while he was Leading `Article also very popular with his superiors Local Diary..... at his office by reason of his un- failing tact and courtesy.

PANCHEN LAMA DONATES $20,000 TO WAE CHEST Nanking. Oct. 13: The Panchen Lama, who is at present in Ching hal, sent a telegram to Nanking to-day donating $20,000 to the na- tional war chest. The Tibetian dignitary also subscribed to $30,000. worth of National Salvation Bonds. | Muslim Cemetery at 5.15 p.m. to

day. -Central News.

The funeral takes place at the

Oct. 12.

Oct. 13.

19-15/10 19-7/8

... Page 8, 8, 1

Paze 12. 13. Page 8:

...Page 4.

Mall Notices ........ ..Page 18. Radio Programme...Page 4. Shipping

.......Page 15, Sport......

Page 14,

The Bervices ...... ...Page 7